Building Industry Fairness (Security of Payment) and Other Legislation Amendment Bill 2020

Did not oppose the bill but criticised the government for taking eight years from its 2015 election promise to fully implement subcontractor payment protections, arguing the reforms are too slow and calling for a royal commission type investigation into the building industry.

“The LNP stands behind a royal commission type investigation into the building industry. That is what we really need to see here because at the end of the day there are issues even on a federal level that need to be dealt with.”— 2020-07-15View Hansard

As the responsible minister, moved the second reading and strongly advocated for the bill's trust account reforms to ensure subcontractors are paid on time, highlighting personal stories of tradies affected by non-payment.

“For too long the issue of security of payment has been in the too-hard basket, and I think that is beneath us as a state.”— 2020-07-14View Hansard

Supported the bill as landmark Labor reform that will establish project bank accounts to ensure subcontractors are paid in full, on time, every time, describing it as creating fairness in the building industry.

“These new laws are landmark Labor reforms, seen nowhere else in the country yet. They will help make sure that subbies are paid in full, on time, every time.”— 2017-10-26View Hansard

As the minister introducing the bill, moved the second reading and commended comprehensive reforms including project bank accounts, simplified claims processes, new penalties for non-payment, and action on phoenixing to ensure subcontractors are paid on time and in full.

“Fundamentally, the Building Industry Fairness (Security of Payment) Bill does two things. Firstly, it sets the country's most comprehensive framework for helping to ensure that people are paid on time, in full, every time. Secondly, it unblocks the grinding gears of small and medium business confidence in the industry in this state.”— 2017-10-25View Hansard

As minister introducing the bill, presented the bill to establish project bank accounts for government and private construction projects, strengthen QBCC licensing, and protect subcontractors from non-payment and head contractor insolvency.

“The central tenet of this bill is one that I and my colleagues on this side of the House feel very strongly about: if you do the work you should get paid. For far too long subcontractors have suffered an unreasonably high level of risk and burden of financial loss associated with the building and construction industry.”— 2017-08-22View Hansard

Spoke as committee chair, noting the committee recommended the bill be passed with 12 recommendations, and emphasised the reforms will ensure workers and subcontractors get paid.

“This bill builds on our security of payment laws and will further ensure that workers, including subcontractors, will get paid.”— 2020-07-15View Hansard

Stated the LNP will not oppose the bill, supporting the principle that tradies deserve to be paid, but heavily criticised the government's slow implementation, repeated delays since the 2015 election promise, and last-minute amendments not provided to the opposition.

“The LNP's position is firm on the principle that everybody deserves to be paid for the work they do. Unfortunately, late payments and non-payment of Queensland tradies remains an ongoing concern in the building and construction industry.”— 2020-07-14View Hansard

Confirmed the LNP would not oppose the bill but heavily criticised it as rushed and ill-considered, noting 70 per cent of subcontractors would not be protected and that 143 amendments demonstrated the bill's flaws.

“We will not be opposing this bill. I think we have made that very clear ... Seventy per cent of the subcontractors in Queensland are offered absolutely no additional protection under this bill because 70 per cent of the subcontractors in Queensland work on projects under $1 million.”— 2017-10-26View Hansard

Expressed conditional support for the bill dependent on the 143 government amendments addressing industry concerns, while defending the LNP's 2014 BCIPA reforms and criticising the government's consultation process. Indicated the LNP would support the bill if the amendments adequately addressed stakeholder concerns.

“If these 143 amendments go a long way to supporting all key stakeholders in the industry, the LNP will be happy to support the bill.”— 2017-10-25View Hansard

Supported the principle of ensuring subcontractors are paid but criticised the government's previous legislation as weak and insufficient, sharing personal examples of tradies left unpaid in his electorate.

“Security of payment reform has been talked about forever and the government must get it right. The government has failed previously with poor legislation that does not protect subbies.”— 2020-07-15View Hansard

Strongly supported the bill as the first of its kind in Australia to decisively address security of payments for subcontractors, defending project bank accounts against claims they would raise construction costs.

“I am very proud to support this bill today. It is the first of its kind in Australia to take such decisive steps to address security of payments for subcontractors.”— 2017-10-26View Hansard

Strongly supported the bill, arguing trust in the payment system equals confidence in the economy and citing Deloitte research projecting the reforms would create 2,373 jobs over 20 years.

“I support this bill because trust equals confidence, and confidence equals certainty in the economy—certainty for tradies and employers to put on that apprentice and create more jobs.”— 2020-07-15View Hansard

Acknowledged the intent of the bill was admirable but criticised the government for rushing legislation without adequately addressing stakeholder concerns, committing the LNP to an implementation panel if elected.

“The LNP supports the principle of providing a safety net for subbies to ensure they do get rightly paid the money they are owed. That is why the LNP will not be opposing the bill. We note the failure of the minister to genuinely consult with all parties and stakeholders.”— 2017-10-26View Hansard

Supported the principle of fair payment but argued the reforms need to balance protection with reducing red tape and administrative burden on smaller builders and developers, calling for a commission of inquiry.

“The greatest gift we can give anyone in any sector but particularly building and construction is certainty—certainty that when they are quoting on a job they are not going to be stomped on by the unions, certainty that when they are quoting on a job they will be paid.”— 2020-07-15View Hansard

Supported the bill's sweeping security of payment reforms, highlighting the project bank account framework and strengthened QBCC regulation of the industry.

“Subcontractors should have the confidence that if they do the work they will get paid for the work they do in full, on time, every time. I commend the bill to the House.”— 2017-10-26View Hansard

Supported the bill as part of ongoing reform to ensure subcontractors are paid on time and in full, also welcoming retirement village protection amendments.

“What we need to see in Queensland is that subbies, contractors, builders and tradies being paid on time, every time and in full.”— 2020-07-15View Hansard

Indicated LNP support but criticised the bill's original form and the lack of consultation, pointing to 143 amendments as evidence it was wrong initially, and called for an implementation panel before private sector rollout.

“It demonstrates that, despite all the rhetoric from those opposite, they clearly got this bill wrong in its original state. Feedback from the likes of Master Builders needed to be taken into consideration to make this bill work.”— 2017-10-26View Hansard

Supported the bill but argued the government's earlier legislation was weak and called for a commission of inquiry, highlighting the collapse of Ri-Con Contractors which left hundreds of thousands owed to Gympie businesses.

“These businesses are among more than 300 unsecured creditors, including subcontractors, across Gympie and the Sunshine Coast who are owed millions.”— 2020-07-15View Hansard

As Minister for Small Business, supported the bill to ensure Queensland subcontractors are fully protected by law with regard to payment of work, contrasting with the previous LNP government's removal of financial reporting.

“This bill ensures that Queensland subcontractors are fully protected by the law with regard to the payment of work. These landmark laws—seen nowhere else in the country—set a new standard for Australia.”— 2017-10-26View Hansard

Supported the bill, focusing on the amendments to the Retirement Villages Act that preserve QCAT review rights for transition plans.

“The amendments ensured that significant changes in the operations of retirement villages occur in a manner that is clear, orderly and fair to the residents.”— 2020-07-15View Hansard

As Premier, spoke in strong support of the bill as historic reform for the construction industry, citing Deloitte analysis showing $6.42 billion in extra economic activity over 20 years.

“I am proud to rise and speak in support of the Building Industry Fairness (Security of Payment) Bill 2017 ... This is the right move. This is the right time. This is a historic reform.”— 2017-10-26View Hansard

Did not oppose the bill but expressed considerable concerns, citing constituents owed over $120,000 by a collapsed builder and criticising the minister for not responding to their correspondence.

“Actions speak louder than words, so it is easy to understand why many Queenslanders have no confidence in the Palaszczuk Labor government to look out for the interests of tradies and other subcontractors.”— 2020-07-15View Hansard

Stated the LNP would not oppose the legislation but criticised the Palaszczuk government's implementation as a 'botched' rollout, raising concerns from a local small builder about additional paperwork and compliance costs.

“No-one disputes that anyone who provides a good service deserves to be paid and paid on time ... the LNP supports subbies being paid and we will not oppose this legislation. Unlike those opposite, we are committed to getting this right.”— 2017-10-26View Hansard

Supported the bill as delivering fairness for subcontractors and small businesses, praising the government for listening to industry and taking time to get the reforms right.

“At the core of this bill is the matter of fairness—fairness for subcontractors, fairness for small business—and only Labor is delivering that.”— 2020-07-15View Hansard

Supported the bill, highlighting his electorate's large tradie population and criticising Master Builders' billboard campaign against the minister as politically motivated.

“We are acting today. The Palaszczuk government has been in for one term and we have acted straightaway. We have not just seen the problem; we have seen the problem and consulted widely with the industry to ensure that we get the model right.”— 2017-10-26View Hansard

Agreed subcontractors deserve to be paid but raised concerns about red tape burden on small family-owned construction businesses in regional Queensland, calling on the minister to review the impact on small contractors.

“We also believe that a fair day's work deserves a fair day's pay. I think everybody in this House is in agreement with that.”— 2020-07-15View Hansard

Supported the principle of protecting subcontractor payments but raised significant concerns from a constituent about onerous payment schedule requirements and supported the LNP's proposed implementation panel.

“That is why I am proud to be part of an LNP team that supports the principle of providing a safety net for subbies to ensure they are rightly paid the money they are owed ... but the bill in its original form will add lots of red tape and costs with no certainty that payments will be better protected.”— 2017-10-26View Hansard

Criticised the bill as providing false hope, arguing project bank accounts only cover large projects and at least 50-70 per cent of tradies are not covered, suggesting insurance-based protections would be more effective.

“I feel that there are aspects of this legislation that are quite disingenuous. In a sense, it provides false hope.”— 2020-07-15View Hansard

Supported the bill, sharing local examples of subcontractors in Thuringowa who had lost significant sums due to non-payment, and detailing the three-account project bank account structure.

“I absolutely support the proposed bill, which has a range of measures to start cultural change within the building and construction industry in this state.”— 2017-10-26View Hansard

Supported the bill but raised concerns about the adverse impacts of mandated project bank accounts on small to medium builders, relaying feedback from local builders concerned the model could shut down their businesses.

“Local builders in my electorate of Moggill and across the western suburbs have contacted me and shared their very real concerns that such a model will have not only on their industry but also on their small business viability.”— 2020-07-15View Hansard

Supported the bill, acknowledging that subcontractor non-payment had been a longstanding issue and congratulating the minister for delivering landmark reform to the $44 billion industry.

“I know that as a consequence of this bill tradespeople in my electorate will get paid. I know that contractors who set a good example by paying their subcontractors will be rewarded by a system that makes sure that they all work on a level playing field.”— 2017-10-26View Hansard

Supported the bill, highlighting that dodgy operators withholding payment causes serious consequences for tradies in her Gold Coast community, including mental health impacts.

“We on this side of the House believe that if you do the work you should get paid on time, in full, every time.”— 2020-07-15View Hansard

Supported the bill as creating a level playing field for powerless small subcontractors against exploitative big business in construction, citing personal stories from his electorate.

“All we are asking is to create a level playing field for small businesses such as this hauler. Make it fair for the powerless.”— 2017-10-26View Hansard

As a registered builder, acknowledged the need for reform but criticised the government's approach as increasing red tape and costs without proven effectiveness, citing a damning Queensland Audit Office report on the QBCC.

“It is hard to forget that the minister cherrypicked items out of reports and commissioned analyses bragging about cost benefits, because that clearly is not reflected by what stakeholders are telling us now.”— 2020-07-15View Hansard

As Independent, strongly supported the bill as landmark legislation resulting from his agreement with the Premier, condemning the Master Builders Association's billboard campaign and pledging to campaign for the minister's re-election if billboards were not replaced.

“This bill is landmark legislation for Queensland. The issues in the building industry are well documented ... I thank our Premier and her government for acting and not allowing themselves to be bullied and intimidated by the big end of town.”— 2017-10-26View Hansard

Agreed everyone deserves to be paid for a fair day's work but raised concerns about extra red tape and paperwork burdening mum-and-dad builders, and criticised the QBCC as a toothless tiger.

“Everybody deserves to get paid for a fair day's work. LNP members and I am sure government members all agree with this.”— 2020-07-15View Hansard

As Minister for Housing and Public Works, closed the second reading debate in reply, defending the bill as comprehensive reform that will change the culture of the industry and criticising the LNP's record on minimum financial reporting.

“This bill proposes a comprehensive package of reforms—not just one change but a suite of changes that will change the culture of this industry for good.”— 2017-10-26View Hansard

Replied as minister, defending the phased approach to reform and citing support from trade subcontractor associations who called the reforms 'the biggest step forward on subbie payments in our nation's history'.

“We are saying this to tradies across Queensland: you deserve to get paid in full, on time every time; you deserve the certainty of getting paid for the work that you do and you deserve a system that will not let you down.”— 2020-07-15View Hansard